NYSE:HSY
HERSHEY CO
A premier confectionery manufacturer delivering beloved chocolate and candy brands to global retail and foodservice markets.
Key Metrics
Investment Thesis
Bull Case
Investors may favor HSY due to its diversified global footprint and resilient brand portfolio that commands pricing power, offering stable cash flows from operations of $2.28B even amidst economic uncertainty.
Bear Case
Concerns regarding the substantial drop in profitability from 2024 to 2025 and high capital expenditures of $454.6M could deter value investors seeking consistent earnings growth and return on invested capital improvements.
About HERSHEY CO
The Hershey Company is a global leader in confectionery products, operating primarily in North America with significant international distribution. Known for iconic brands like Hershey's, Reese's, and Hershey's Kisses, the company serves consumers through retail channels, foodservice, and e-commerce platforms.
Analysis
Management Discussion
While revenue grew to $11.69B in 2025, net income declined sharply to $883.3M compared to the previous year's $2.22B, suggesting a significant increase in operating costs or non-operating expenses despite solid top-line growth.
Industry Overview
The global confectionery industry is characterized by intense competition, shifting consumer preferences toward functional and premium products, and increasing pressure on margins from raw material inflation and supply chain logistics challenges.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $10.42B | $11.16B | $11.20B | $11.69B |
| Cost of Revenue | $5.92B | $6.17B | $5.90B | $7.77B |
| Gross Profit | $4.50B | $5.00B | $5.30B | $3.92B |
| Operating Expenses | $2.24B | $2.44B | $2.40B | $2.48B |
| Operating Income | $2.26B | $2.56B | $2.90B | $1.44B |
| R&D | $46.9M | $50.0M | $55.8M | $61.7M |
| G&A | $2.24B | $2.44B | $2.37B | $2.46B |
| Stock-Based Comp | $66.0M | $81.0M | $44.4M | $65.5M |
| D&A | $379.0M | $419.8M | $455.3M | $503.7M |
| Depreciation | $253.6M | $265.6M | $292.2M | $328.5M |
| Amortization | $79.7M | $88.8M | $84.6M | $85.4M |
| Other OpEx | $-45.0M | $-49.6M | $-26.8M | $-41.1M |
| Non-Operating Income | $-343.7M | $-389.0M | $-424.3M | $-227.3M |
| Interest Expense | $140.1M | $161.5M | $174.3M | $224.8M |
| Interest Income | $2.5M | $9.7M | $8.7M | $34.6M |
| Pre-Tax Income | $1.92B | $2.17B | $2.47B | $1.21B |
| Income Tax | $272.3M | $310.1M | $252.7M | $330.9M |
| Continuing Ops | $1.64B | $1.86B | $2.22B | $883.3M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $1.64B | $1.86B | $2.22B | $883.3M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $1.64B | $1.86B | $2.22B | $883.3M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.62B | $2.91B | $3.76B | $3.59B |
| Accounts Receivable | $711.2M | $823.6M | $800.4M | $729.5M |
| Inventory | $1.17B | $1.34B | $1.25B | $1.43B |
| Prepaid Expenses | $272.2M | $345.6M | $974.2M | $504.2M |
| Other Current Assets | $463.9M | $401.9M | $730.7M | $925.9M |
| Long-Term Assets | $8.33B | $8.99B | $9.19B | $10.15B |
| Intangibles | $1.97B | $1.88B | $1.87B | $2.48B |
| Goodwill | $2.61B | $2.70B | $2.71B | $3.00B |
| Operating Leases | $326.5M | $308.0M | $337.7M | $325.3M |
| Other LT Assets | $3.43B | $4.11B | $4.27B | $4.36B |
| Total Assets | $10.95B | $11.90B | $12.95B | $13.74B |
| Current Liabilities | $3.26B | $3.01B | $3.93B | $3.01B |
| Accounts Payable | $970.6M | $1.09B | $1.16B | $1.26B |
| Current Leases | $31.8M | $34.5M | $40.6M | $49.6M |
| Taxes Payable | $6.7M | $29.5M | $51.0M | $63.7M |
| Other Current Liab | $1.42B | $990.4M | $1.87B | $672.3M |
| Long-Term Liabilities | $4.39B | $4.80B | $4.30B | $6.09B |
| LT Operating Leases | $294.8M | $277.1M | $304.8M | $285.9M |
| Other LT Liab | $4.10B | $4.52B | $4.00B | $5.81B |
| Total Liabilities | $7.65B | $7.80B | $8.23B | $9.10B |
| Shareholders' Equity | $3.30B | $4.10B | $4.71B | $4.64B |
| Paid-In Capital | $1.30B | $1.35B | $1.38B | $1.43B |
| Retained Earnings | $3.59B | $4.56B | $5.70B | $5.50B |
| AOCI | $-252.3M | $-230.1M | $-303.9M | $-247.3M |
| Total L&E | $10.95B | $11.90B | $12.95B | $13.74B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.64B | $1.86B | $2.22B | $883.3M |
| Non-Cash Adjustments | $210.7M | $84.0M | $233.7M | $958.5M |
| Working Capital Changes | $472.3M | $377.4M | $76.7M | $435.6M |
| Cash from Operations | $2.33B | $2.32B | $2.53B | $2.28B |
| Capital Expenditures | $519.5M | $771.1M | $605.9M | $454.6M |
| Cash from Investing | $-787.4M | $-1.20B | $-960.3M | $-1.28B |
| Debt Issuances | $0 | $744.1M | $0 | $1.98B |
| Debt Repayments | $4.7M | $755.4M | $306.4M | $606.4M |
| Share Buybacks | $389.0M | $264.9M | $494.2M | $0 |
| Dividends Paid | $775.0M | $889.1M | $1.08B | $1.09B |
| Cash from Financing | $-1.42B | $-1.15B | $-1.30B | $-803.4M |
| FX Effect | $9.9M | $-38.2M | $54.1M | $-180.0K |
| Net Change in Cash | $134.6M | $-62.0M | $328.8M | $195.1M |
| Beginning Cash | $329.3M | $463.9M | $401.9M | $730.7M |
| Ending Cash | $463.9M | $401.9M | $730.7M | $925.9M |
Frequently Asked Questions
How does HERSHEY CO make money?
The company derives revenue from its North America region, which includes both consumer packaged goods and foodservice divisions, alongside International operations that distribute products across Europe, Latin America, Asia Pacific, and the Middle East.
What are the main risks for HSY?
Sensitivity to cocoa bean price volatility and global supply chain disruptions affecting raw material costs, potential erosion of market share due to health-conscious consumer trends shifting away from sugar-heavy products, and foreign exchange fluctuations impacting international earnings.
What is HSY's competitive advantage?
Strong brand equity and deep consumer loyalty for iconic chocolate brands, an extensive and efficient direct-to-consumer e-commerce network, and a robust supply chain optimized for premium ingredient sourcing.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.